CEO Insights Magazine

KKR to buy 2.32 Percent Stake in Jio Platforms for Rs.11,367 Crore

CEO Insights team

CEO Insights team, Press Release

After raising huge investment from Facebook ($5.7 percent for 9.99 percent stake), Silver Lake (Rs.5655.75 crore for 1.15 percent stake), Vista Equity Partners (picked 2.32 percent stake for Rs.11,367 crore) and General Atlantic (1.34 percent stake for Rs.6,598.38 crore), private equity firm KKR is all set to make its largest investment in Asia. It will invest Rs.11,367 crore in Jio Platforms for a 2.32 percent stake. This transaction values Jio Platforms at an equity value of Rs.4.91 lakh crore and an enterprise value of Rs.5.16 lakh crore. With the latest deal, Jio Platforms will get a combined sum of Rs.78,562 crore from the five investments. The deals are a part of the plan to make the company net debt-free by the end of this fiscal year.

Mukesh Ambani, Chairman & Managing Director of Reliance Industries, says, “I am delighted to welcome KKR, one of the world’s most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians. KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years.

I am delighted to welcome KKR, one of the world’s most respected financial investors as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians

We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio. A wholly owned subsidiary of Reliance Industries, Jio Platforms is a next-generation technology platform focused on providing high-quality and affordable digital services across India.

Equity firm KKR was founded in 1976 and has invested over $30 billion in tech companies since its inception. Today, the firm has over 20 companies in its portfolio across Technology, Media & Telecom sectors. On the other hand, India has been a key strategic market for KKR since 2006.

Henry Kravis, Co-Founder & Co-CEO of KKR, says, “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution. We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific.”